Source: The post H-1B visa program: Its benefits and criticisms has been created, based on the article “H1B Visa and its Impact on India” published in “The Indian Express” on 28th August 2025. H-1B visa program: Its benefits and criticisms.
UPSC Syllabus Topic: GS Paper-2 International Relations
Context: Recently, US Commerce Secretary Howard Lutnick termed the H-1B visa program a “scam,” reigniting the debate around its economic and social implications.
About H-1B visa program
The H-1B visa program, created under the Immigration Act of 1990, allows American employers to hire foreign skilled workers in specialised fields such as IT, engineering, and medicine. It has been a key pathway for skilled Indian professionals, with more than 70% of approved H-1B petitions in recent years coming from India.
Benefits of the H-1B Program
- For U.S.A.’s Economy
- It bridges skill gaps in STEM fields where the domestic supply is insufficient.
- It supports innovation and competitiveness of US companies, especially in tech (Google, Microsoft, etc.).
- It lowers operational costs for firms, boosting profits and growth.
- For India
- It provides global exposure and opportunities for Indian professionals.
- It enables large remittance inflows to benefit the Indian economy.
- It enhances India’s human capital and knowledge transfer upon return.
Criticisms of the H-1B Program
- American workers argue that the program displaces domestic jobs by allowing companies to hire cheaper foreign workers.
- Concerns of wage depression and exploitation of workers.
- Critics claim that it suppresses wages and is used by firms primarily as a cost-cutting mechanism rather than to address real skill shortages
- Right-wing groups argue it undermines American workers and sovereignty.
- Criticised as benefiting billionaires and corporations more than the average worker.
Question: Critically examine the debate surrounding the H-1B visa program in the United States.
